Jitendra Arora of ICICI Prudential discusses market consolidation, challenges in valuations, and investment strategies emphasizing long-term growth over short-term gains. He provides insights on sectors like private banks and real estate for potential investment opportunities. Arora says: "Private bank is one pocket where we find a lot of comfort as a house in terms of the valuations."
We like certain stocks from banking, insurance, retail, hospitals and capital goods. Though some of these stocks may seem expensive, they will compound well over the long term, thus justifying their current multiples.
“Domestic inflows and some easing off within the FII outflows are taking the market higher, The geopolitical uncertainty still remains high and that is likely to impact the markets. On the domestic side, the flows are impacting the market. In addition to that, we expect some kind of volatility may creep into the market because the elections are around the corner.”
“Fundamentally India remains a very attractive market and we will see these bouts of selling and buying by FIIs but if I were to stick my neck out and say that how do we see direction of capital over a longer period of time, I think we will see steady FII inflows.”
When you are saying that return expectations, again I will come back to the horizon. So, if you think that over the next 12 months perhaps our return expectations need to be hunkered down, maybe you are right.